More than 1,000 people arrested in China for cryptocurrency fraud
Citizens are accused of "money laundering" through phone and Internet scams
China’s Ministry of Public Security detained more than 1,000 people in an operation against a network accused of “fraudulent activities” related to cryptocurrencies. The arrests were made in Beijing, the neighboring Hebei region, the Shanxi (north) region and Liaoning, a province bordering North Korea.
People are accused of manipulating cryptocurrencies for “money laundering” from phone and Internet scams. However, the authorities did not detail the amounts involved or the cryptos used in the scam.
The government administration is concerned about the speculative risk posed by cryptocurrencies, due to their anonymity and the impossibility of being traced, by the financial system, as well as for social stability. However, it supports the holding of the virtual currency.
Beijing had become a bastion of Bitcoin, but as of 2019 it changed its position radically, considering them instruments at the service of illicit activities, prohibiting payments in crypto assets.
In recent weeks, China strengthened bans on so-called bitcoin mining, the energy-consuming process of creating cryptocurrencies.
M.Rodríguez
Source: elcomercio
